NEW YORK (AP) – The outbreak of coronavirus has caused a shock to the global economy at an unprecedented rate. The following is the development this weekend related to the global economy, the workplace and the spread of the virus.
SEAWORLD FURLOUGHS: SeaWorld Entertainment overflows 90% of its workers as the new corona virus has forced the company to close its 12 theme parks.
Employees will be paid out at the beginning of next week. After next week, workers will be paid without pay for an uncertain amount of time, the Orlando-based company said Friday in a Securities and Exchange Commission filing.
EXTENDED STORE CLOSES: Victoria’s Secret parent L Brands joins the growing list of retailers extending their two-week temporary closures as the coronavirus crisis escalates in the United States.
L Brands, which also runs Bath & Body Works, said on Friday that it will extend its first deadline on March 29 but declined to predict when stores will open again. It also said it covered most of its store workers, in addition to those currently not working in the online business or unable to work from home from April 5 until further notice. Workers will continue to receive benefits.
On Wednesday, Nordström said it would extend its temporary closures in the United States and Canada until at least April 5. It also said it would exceed some of the labor force from April 5 over the next six weeks. Lululemon CEO Calvin McDonald said it expects its stores in the US to remain closed for longer than the two-week period in China.
When stores remain closed, retailers will have to make more drains, which would likely lead to permanent layoffs when trying to preserve cash. Coresight Research, a global research company, already predicts that 15,000 stores will close this year, setting a new record and almost doubling its forecast of 8,000 store closures earlier this year.
SATELLITE START-UP BANKRUPTCY: A satellite internet startup supported by the Japanese tech conglomerate SoftBank has filed for bankruptcy, citing the failure to secure necessary funding as the coronavirus pandemic beats the world economy.
OneWeb, which is also supported by Virgin founder Richard Branson and US chipmaker Qualcomm, announced Friday that it had done the Chapter 11 filing in New York. The company said it would conduct a sale of the business.
OneWeb said that negotiations to fully finance the company through its commercial launch fell apart due to market turmoil in connection with the coronavirus outbreak. The company said it made use of its current cash collateral to continue to fund existing operations, as well as negotiate financing debtors in connection with.
OneWeb said it has reduced the workforce but has not provided details.
The startup is one of several companies competing in a new industry to send satellites to a orbit that can provide the Internet to the most remote places on earth.